Alibaba Group Holding Ltd said on Tuesday night that its logistics unit, Cainiao Smart Logistics Network, had withdrawn its initial public offering and listing application on the Hong Kong Stock Exchange.

Alibaba, which holds a 64 percent stake in Cainiao, said it intends to invest up to $3.75 billion on acquiring the remaining stock from minority investors and employees with vested equity.

"Given the strategic importance of Cainiao to Alibaba and the significant long-term opportunity we see in building out a global logistics network, we believe this is an appropriate time to double down on Alibaba's investment in Cainiao," Joe Tsai, chairman of Alibaba, said in a statement.

The deal would establish a more competitive consumer experience, by further integrating Cainiao's logistics services and Alibaba's e-commerce businesses, the company said.

Cainiao officially filed its application for an IPO on the Hong Kong bourse in September. Alibaba announced plans to restructure its businesses last March, by splitting them into six units that would eventually raise their own capital and go public.

The scrapped IPO comes as Alibaba has set its focus on growing its cloud computing and e-commerce businesses.